Recovery in Employment Level Has Stalled

Research in recovery of employment level reveal "stalling" figures.

Research in recovery of employment level reveal “stalling” figures.

A growing number of employers are planning on making staff redundant, confirming a possibility on one wanted to hear; the recovery in employment has stalled.  600 companies surveyed said they would be cutting jobs in the next 3 months.  This figure is not far from the 25 per cent redundancy rate at the end of 2009.

The Chartered Institute of Personnel and Development (CIPD) found more public sector companies were planning redundancies than private firms.

Gerwyn Davies, public policy adviser at the CIPD said: “Most striking at this time is that, while the number of employers planning to make redundancies is similar to that in the Spring report, this trend masks the true extent of forthcoming job losses in the fhird quarter of the year as the proportion of the workforce that will be affected by these redundancy programmes has jumped by 50 per cent.

As is widely reported, this is being driven chiefly by public sector organisations, where redundancies will affect almost 8 per cent of the workforce on average.  The medium – term employment outlook is likely to be weaker than the forecasts made by the Office for Budget Responsibility, where expectations are that employment is to increase by 200,000 next year.  The CIPD believes that a rise in unemployment in the next two years remains a distinct possibility as the private sector recovery is offset by the 600,000 public sector job losses the government expects over the next five years.”

Alan Downey, head of public sector at KPMG added: “Managers in the public sector have woken up to the scale of the financial crisis they face, and many are now contemplating redundancy programmes.  In the months ahead we will see a substantial reduction in public sector headcount as the cuts begin to bite.”

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